ORANGE COUNTY, Fla. — The old rule of thumb for retirement was an easy one to remember: save a million dollars, and you’ll be set to live out your days worry-free.
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Thanks to inflation, financial analysts say that old rule of thumb is no longer true.
With the cost of everything from housing to Ho-Ho’s increasing, advisors now suggest workers to have approximately $1.9 million tucked away in order to spend freely during their golden years, especially workers who are currently in the early stages of their career.
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Oxford advisory group founder Chris Dixon said the number might be new, but the old advice still applies.
Ideally, a worker is contributing 10% to 15% of their earnings toward a 401K or retirement plan, or at least as much as their company matches.
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There are also milestones that workers should aim to hit:
- By 30, someone should have an amount saved equal to their annual salary.
- By 40, three times that amount.
- By 50, six times that amount.
- By 65, 10 times that amount.
“When you go to retire, little things end up being a big difference, and you could be surprised – ‘Wow, I did get there just by doing the little mundane things.’”
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